Oil gains on U.S. growth; natural gas soars

NEW YORK -Natural gas rose to the highest level in six months Thursday as the Energy Department reported a large decline in supplies and cold weather had homeowners turning up the thermostat in many states.

Natural gas added 17 cents to $4.13 per million British thermal units, the highest closing price since May 29. Natural gas in storage fell by 162 billion cubic feet last week, compared with analysts' expectations for a decline of 143 billion cubic feet. Cold weather is covering the western and middle parts of the country and is heading east.

Also Thursday, the price of oil edged higher as the U.S. economy grew more than expected in the third quarter.

Benchmark U.S. crude for January delivery rose 18 cents to $97.38 a barrel on the New York Mercantile Exchange. Oil rose near $98 for the first time in five weeks before falling back a bit. Oil is still up $4.66 a barrel, or 5 percent, this week.

The Commerce Department said the U.S. economy grew at a 3.6 percent annual rate from July through September, the fastest since early 2012. The numbers signaled some momentum in the economy, although some economists cautioned that nearly half the growth came from a buildup in business stockpiles, a trend that could reverse in the current quarter.

At the gas pump, the national average price for a gallon of gas fell 1 penny to $3.25. That's down 3 cents from a week ago, and is 13 cents cheaper than at this time last year. In Houston Thursday, the average was $3.117 a gallon, down from $3.121 Wednesday.

Brent crude, a benchmark for international oils, fell 90 cents to $110.98 a barrel in London.